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Tata Steel Raises $1.3 Billion Through Bonds
Jan 24, 2018


Tata Steel Limited has raised $1.3 billion by issuance of unsecured bonds in the international markets.

“The issue comprises $300 million 4.45% Unsecured Bonds due on July 24, 2023 and $1 billion 5.45 per cent Unsecured Bonds due on January 24, 2028 by Abja Investment Co Pte Ltd, a wholly owned subsidiary of Tata Steel incorporated in Singapore,” said a company statement.

The bonds are rated BB- by S&P and will be listed on the Singapore Exchange (SGX).

Road shows were organized simultaneously in Dubai, Singapore, London and Hong Kong and the transaction was launched on January 18, 2018.

By the time books closed at the end of the day, the peak order book was in excess of $7 billion across tranches, said the statement adding that the tremendous response enabled the issue to be priced about 42 bps tighter than the initial price thoughts on both the tranches.

The deal was distributed to a wide number of long term buy-and-hold institutional investors, banks and private banks across regions.

Mr. Koushik Chatterjee, ED and CFO of Tata Steel said “The Proceeds of the bonds will be used to refinance the offshore obligations of the Group, which will help de-risk the balance sheet, enhance financial flexibility, diversify the investor base and improve the overall debt maturity profile. The completion of the refinancing also marks an important step forward to create a sustainable financial structure in preparation of the proposed joint venture in Europe”.

Tata Steel shares were trading up 1.1% at Rs 760 in a firm Mumbai market on Friday morning.